The regulations of the countries vary depending on their regulations and this indicates modifications on the internet, even with streaming platforms, causing large companies to be affected depending on where they arrive.
No matter how much money something generates, rules must be followed, and this includes streaming platforms, such as Netflix, who found themselves in big trouble with a millionaire lawsuit imposed by South Korea, but despite the problems, they were able to get out of it without having to pay.
Netflix faced a millionaire lawsuit in South Korea for saturating the internet.
A South Korean judge ordered in 2020 that Netflix had to pay the internet provider for network usage. It was argued that content providers do not pay for network usage and generate huge traffic.
Netflix traffic in the country increased 24 times since May 2018, reaching 1.2 trillion data bits per second last September, according to SK Broadband.
Due to the huge traffic Netflix was generating, SK Broadcast, one of the main internet providers in South Korea, asked Netflix for compensation, but they were able to reach a mutual agreement because Netflix offered new plans and services to avoid the penalty.
However, the Seoul District Court ruled against Netflix in June, arguing:
“SK offers a service for a price.”
“It is reasonable that Netflix should offer something in exchange for the service.”
As a solution to the problems, both companies decided to work together:
“The two companies also plan to introduce bundled services with Netflix’s ad-supported pricing plan so that more customers can enjoy Netflix.”
What do you think about it? Do you think Netflix should have paid a huge amount of money to Internet companies in the Korean country?
